ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PT Indofood Sukses Makmur Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.62%.
As of today (2026-06-25), PT Indofood Sukses Makmur Tbk's WACC % is 5.05%. PT Indofood Sukses Makmur Tbk's ROIC % is 12.00% (calculated using TTM income statement data).
PT Indofood Sukses Makmur Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
PT Indofood Sukses Makmur Tbk (OTCPK:PIFMY) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, PT Indofood Sukses Makmur Tbk's WACC % is 5.05%. PT Indofood Sukses Makmur Tbk's ROIC % is 12.00% (calculated using TTM income statement data).
PT Indofood Sukses Makmur Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
PT Indofood Sukses Makmur Tbk ROIC % Related Terms
PT Indofood Sukses Makmur Tbk ROIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Packaged Foods subindustry, PT Indofood Sukses Makmur Tbk's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PT Indofood Sukses Makmur Tbk ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Indofood Sukses Makmur Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Indofood Sukses Makmur Tbk's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PT Indofood Sukses Makmur Tbk (PIFMY) has a ROIC % of 12.62% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on PT Indofood Sukses Makmur Tbk and its competitors.
Is PT Indofood Sukses Makmur Tbk's ROIC % too high?
PT Indofood Sukses Makmur Tbk's current ROIC % is 12.62%. The Consumer Packaged Goods industry median ROIC % is 5.14. PT Indofood Sukses Makmur Tbk's value of 12.62% is 145.5% above this industry median. Overall, PT Indofood Sukses Makmur Tbk has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Indofood Sukses Makmur Tbk's ROIC % compare to KHC and GIS?
PT Indofood Sukses Makmur Tbk's ROIC % of 12.62% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.14. PT Indofood Sukses Makmur Tbk's value of 12.62% is 145.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.14, based on 1,948 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PT Indofood Sukses Makmur Tbk's current ROIC % of 12.62% is 145.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on PT Indofood Sukses Makmur Tbk and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Indofood Sukses Makmur Tbk's current ROIC % is 12.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indofood Sukses Makmur Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Indofood Sukses Makmur Tbk (PIFMY) is currently considered Modestly Undervalued. The stock's GF Value™ is $21.65, compared to a current price of $19.02 — trading 12.2% below its estimated fair value. The current ROIC % is 12.62% and 145.5% above the Consumer Packaged Goods industry median of 5.14. PT Indofood Sukses Makmur Tbk's overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For PT Indofood Sukses Makmur Tbk (PIFMY), the current ROIC % is 12.62% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PT Indofood Sukses Makmur Tbk (PIFMY) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indofood Sukses Makmur Tbk stock appears to be undervalued.
The current stock price of $19.02 is trading 12.2% below its estimated GF Value™ of $21.65.
GuruFocus considers PT Indofood Sukses Makmur Tbk to be Modestly Undervalued.
Key valuation signals for PIFMY:
ROIC %: 12.62%
GF Value™: $21.65 vs. price of $19.02 (12.2% below fair value)
Industry Position: 145.5% above the Consumer Packaged Goods median
No single metric tells the full story. See the PIFMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indofood Sukses Makmur Tbk Business Description
PT Indofood Sukses Makmur Tbk is a packaged food company with a diversified portfolio in both raw materials and processed food. It divides operations into the Consumer Branded Products Business Group, Bogasari Business Group, Agribusiness Group, and Distribution Business Group. The Consumer Branded Products Business Group, which generates maximum revenue, produces a varied range of consumer-branded products such as noodles, dairy, snack foods, special foods, food seasonings, and beverages. The Bogasari unit mainly produces wheat flour as well as pasta; and the Agribusiness unit is involved in seed breeding, oil palm cultivation and milling, and the production and marketing of branded cooking oils, margarine, and shortening. Geographically, the Group generates key revenue from Indonesia.
91GF Score
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